Market Outlook SPY for Dec 10th '07

Dominant TF: 60 mins and Daily
Swing: UP-UP-DN
Cycle: Daily 128: Avg
Market Direction: Upper bias but possible congestion

Similar comment as NDX.
SPY surprisingly passed the 150 level late in the day to almost hit PR2 (151.06).

60mins: Congestion to slight upper bias.
Significance level coming down a bit, ahead of MTFS pattern completion. We would prefer a crossover in overbought territory, but looking at current line gradients, that may just not happen. Entropy is still positive so MTFS can still crawl slightly upward in the short term (even some congestion above 150 could be good enough).
A retracement is unlikely.

Daily: technically up, but behaviour on 151 must be watched very carefully.
We unfortunately have little more to say today:
SPY now hit PR2 (61.8% Fib retracement) and hovered there. MTFS is however bullish now and current resistance level should technically be broken. We must however as always remain very cautious. Continuation of congestion or even a retracement are quite possible in the short term.

Weekly: Upper bias
MTFS is unreadable because of the low significance level, hence one should not pay too much attention to the lines down gradients.
For the time being, higher highs and higher lows are bullish signs, with due caution that moves in the last 6 months have been way too fast for this time frame.